What would happen to the demand curve when there is an increase in the price of substitute products ?

Options

A. Outward shift
B. Remains constant
C. Initially inward and then after a period outward shift
D. Inward shift

Answer

A

Explanation

The demand curve is a graphical representation depicting the relationship between a commodity.s different price levels and quantities which consumers are willing to buy. An increase in the price of substitutes lead the demand curve to shift outward that indicates an expansion of the demand curve. Substitues are goods that can consumers buy in place of the other like how Coca - Cola & Pepsi are very close substitutes.